The Impact Of Advertisement Revenue On Media Sustainability: A Study Of Vanguard Newspaper
The study investigated the impact of advertising on media sustainability using the Guardian newspaper as case study, since newspaper depend revenue from advertisement to run the organization. The study adopted the gatekeeper theory of mass communication. It used the content analysis to generate information. The findings show that advertising has not only become an integral part of man’s socio-political and economic life, but has also grown both as a business activity and as a profession. It has become a conscious daily activity and experience which man cannot ignore whether as practitioner, advertisers a consumer. When newspaper prosper financially, it is because recognize their worth as advertising media. Being that the major source of revenue for media houses is advertising presently most newspaper depends on advertisements for their construed meaningful and profitable existence. The study recommends that Newspaper organization should endeavour to consolidate on advertisements revenue to keep the organization afloat. Newspaper organization should maintain high ethical standard in the selection of some advertisement on illicit product such as alcoholic drink, cigarette etc.
Advertisement should not affect media objectivity in news reporting. Newspaper organization should employed experience staff that will drive the generation of advertisement revenue.
Table Of Contents
- Title Page
- Table of Content
- 1.1 Background to the Study
- 1.2 Statement of the Problem
- 1.3 Objectives of the Study
- 1.4 Research Questions
- 1.5 Significance of the study
- 1.6 Scope of the Study
- 1.7 Definition of Terms
Literature Review / Theoretical Framework
- 2.1 Literature Review
- 2.2 Theoretical framework
- 3.1 Design of the Study
- 3.2 Population of the Study
- 3.3 Sample Size
- 3.4 Sampling Techniques
- 3.5 Instrument of Data Collection
- 3.6 Procedure of data collection
- 3.7 Techniques of Data Analysis
- 3.8 Limitation of the Study
Data Presentation and Analysis
- 4.1 Data Presentation
- 4.2 Data Analysis
- 4.3 Discussion of Findings
Summary, Conclusion and Recommendations
- 5.1 Summary
- 5.2 Conclusion
- 5.3 Recommendations
1.1 Background To The Study
The need to persuade the behavior of people to make buying decision brought the concept of advertising. According to Terkan (2014:239) “One of the most significant impacts of globalizing on the business word is the immense empowering of the consumer as a global citizen. The consumer has become more powerful and important in the twenty first century than in previous years”. Consumers have to calm down and wait to be wooed by companies now. Companies have to be creative and active on their production to meet the demand of the consumers from every corner of the globe. Competition is seen on a global scale in today’s world, companies are faced with the challenge of capturing and maintaining ICT and global minded customers, (Terkan, 2014).
Every business oriented organization gives utmost priority to promotional activities that will keep target consumers constantly informed about its products in the market. The practice of advertising is as old as man. According to Keller (2005), the urge to advertise seems to be a part of human nature evidenced since ancient times. One of the earliest means of advertising was the use of signs. Early craftsmen used signs to advertise their wares and some traders like Phoenicians planted commercial messages on prominent rocks. They were among the forerunners of modern day advertising. Advertising is a prominent feature of modern business operations and also a form of communication that attempts to interpret the qualities of products services and ideals in terms of consumer needs and wants. Some companies or organizations embrace advertising to achieve good will high market share and sales. A successful national economy depends on sales promotion in the form of advertising to maintain factory production, creation of employment and so the money goes round and round. Advertising is a mass media content that provides a platform for firms to create awareness about their products or services and how consumers can make the best out of such products.
Bovee and Arens (1994), defined advertising as “the non-personal communication of information, usually paid for and usually persuasive in nature about products (goods and services) or ideas by identified sponsors through various media.” In the same vein, Kotler (2003:591), simply says advertising is “any paid form of ideas, goods, or services by an identified sponsor”. This awareness- creation exercise does not only have to be regular but also persuasive enough to influence buying decisions in favour of the product. Advertising creates an avenue for marketing process to take place. It is a key promotional technique which plays up products advantages with a view to winning customers and keeping them. It does this job more effectively when combined with other promotional mix variables.
Advertising as a marketing tool is used by business organization to inform consumers that the right product is available at the right place, right price and to convince the consumer to purchase them. Advertising comprises all messages that are paid for in the media, owned and controlled by people other than the company making the advertisement. Therefore, advertising must be tailored towards consumer’s satisfaction and organizational performance. One could encounter advertising messages through various traditional media including mass media such as Television, Radio, Magazines, Newspapers, outdoor, direct mail or new media such as blogs, websites or text messages, as advertising has a stimulating influence on purchasing behaviour of the consumers. Olusegun (2006) opined that all advertisement must be honest and follow ethical standards and must not be perceived by the target consumer as lie; otherwise, it can better the image of a company and hinder it from building successful brands. Thus, a good advert message should not be boring but rather reflect the lifecycle of the product, (Okeji, 2008). He concluded that advertising must be exposed in the right medium as this will enable organization to reach the right people with the right message. Person, organizations, groups, government agencies and different sectors of many economies employ advertising to marshal messages to forget public. This is because a well- crafted advertisement program can be a cost- effective way to disseminate messages and build hand preferences.
According to Benson Eluwa (2004), the Advertising Pratitioners of Nigeria(APCON) define advertising as an information which is persuasive and informative about goods and services that is paid for or sum of ideas which defined by advertisers via using media. Kumar (2004) views advertisement as an act of advertising which stands for giving public notice or to announcing publicly as a dictionary meaning. Advertising is a communicative ability to bring to the public knowledge of a particular new product and service or the reminder of the existence of a particular product and service through the mass media. According to Trehan and Trehan (20011), market is controlled by consumers so companies have to persuade and attract the consumer for selling their products and services. According to Terkan (2014), in business, advertising help to selling goods and services. It is an important tool for business marketing. Consumer can learn all details information by advertising. Advertising is important for competition among the business. It also affects the products price and also its quality. Moreover, advertising help to speed up the introduction of new inventions, the process of industrialization and the expansion of businesses.
The media help to link up to buyers and sellers in an easy environment.
Many buyers and sellers meet each other on the pages of the newspaper, on the screen of the television set and on the voice of radio station. It is therefore means that the mass media is the agent of business expansion. According to Chinenye, Ephriam and Chinne (2012:312) “advert message (content) is relayed on a vehicle, a pipe that conveys it to the desired audience. The pipe or vehicle is the media. Due to the impact of revenue generation for mass media, advertisement has been an important concept in journalism. According to Nwamuo (2009:210) “revenue from advertisement represents a growing source of media finances in different parts of the world. Many corporate organizations in Nigeria spend millions of naira annually on advertisement”. Media sustainability is depended on the amount of revenue generated. This is only for private owned media as government owned media depend on government subvention. Medium like newspaper started as private; that was during the colonial rule. Newspaper like West Africa pilot were political newspaper however, they were sponsored by the owners.
Today there are many newspaper organizations that have national outlook. These newspapers are owned by private individuals in the society. Among them is the Guardian newspaper. It was established in 1983 by the entrepreneur Alex Ibru, assisted by Stanly Macaebuh, a top journalist with the daily times newspaper. It was first published on February 22, 1983 as a weekly, appearing on Sunday, it started daily publication on July 4, 1983. Another accusation is based on the likehood of advertisement stimulating the process of goods as companies try to recover huge amount spent on advertising in the media.
1.2 Statement Of The Problem
Advertising communication plays a key role in the development and survival of mass media. Many newspaper has been folded up due to lack of advertisement patronage from organizations. Therefore means that newspaper should be aggressive in winning advertisement. According to Hule and Anderson (2003:432) “expectedly, advertisement have capitalized on the difficult economic situation to inject their influence on the newsroom; a situation that lightens the border between advertisement and news”.
The impact of advertisement in mass media is too strong to be disputed. Most of the revenue generation comes from advertisement. It is therefore important to investigate the impact of advertisement on newspapers survival. This study will look into the impact of advertisement on media sustainability, using vanguard newspaper as a study.
1.3 Objectives Of The Study
- To examine the impact of advertisement revenue in Vanguard newspaper.
- To find out the various cost for advertisement in Vanguard newspaper
- To find out the frequency of the advertisement in Vanguard newspaper.
- To ascertain the nature of Vanguard newspaper advertisement.
- To examine the advert pagination in Vanguard newspaper.
1.4 Research Questions
- What is the impact of advertisement revenue in Vanguard newspaper?
- What is the cost of various adverts in the Vanguard Newspaper?
- What is the frequency of the advertisement in Vanguard newspaper?
- What is the nature of newspaper advertisement in the Vanguard newspaper?
- What is the advert pagination?
1.5 Significance Of The Study
Advertising is a phenomenon in mass communication which seeks to increase sales for business outfit and generate revenue for mass media. It is therefore important to note that this study will be beneficiary to mass media organizations is understanding the scope of advertisement as well as the ethical standards in other to build a medium with objectivity and generate revenue as well. On the part of unidentified sponsor, the use of media advertisement will stimulate sales by making the products and service common.
1.6 Scope Of The Study
The scope of this study is limited to Vanguard newspaper. The duration of the publication of The Vanguard newspaper covers a periodof January 2016 to June 2016. The research is on the advertisement on the newspaper.
1.7 Definition Of Terms
Advertisement is a form of communication activation. It can be informative and persuasive to nature, utilizing the mass media to persuade the consumers to purchase goods and services
The channel of communication that reach audience with information, updates, messages and educative programme
A printed material that is published daily with news covering business, politics, entertainment e.t.c
The ability to stay in business base on certain factors.
This is the returns of carrying advertisement campaign for business outfit by the mass media. It the major source of income to the mass media for sustainability.
This is the numbering system of the newspaper that enhances easy location of item either the front page index.
Nature of Advertisement:
The type of advertisement campaign carried out by the newspaper. It could be classified or advertorial or pictorial advertisement. It also talks about the colour type.
Cost of Advertisement:
This is the total cost of advertising in the newspaper and it is been influenced by size.
The need for understanding the impact of advertisement in mass media sustainability makes the researcher to adopt the persuasive theory mass communication persuasive. According to Folarin (2005:152) the influence of advertisers is reflected more in self-censorship by the internal gatekeepers themselves, who would not wish to see advertising dollar or naira dry up. They are said to be occasional disagreement between “office” and shops (news office and business sections) over the need to respect advertisers sensitivities.
Summary, Conclusion And Recommendations
5.1 Summary Of The Findings
Colour page of the Vanguard newspaper advertisement appeal less. However, black and white advertisement seem to be dominated as more advertisers prefer it because it is less cost to compare with colour page advertisement with great buying behavioural impact on the consumers. The findings from this table indicate that most advertisement in the guardian newspaper appeared in black and white advertisement. Colour advertisements appear more than classified advertisement.
Political advertising and product and service advertising appear more than any other advertisement. Other the advertisement counts of the Guardian newspaper again personality, Obituaries, and religious advertisement. Advertisement of the Guardian newspaper appear in the inside page than the front page and the back page.
Colour is a subject of emotion. People are emotionally attracted when objects are represented with colours. Colours affect different people in different ways, colour helps to create attention, covey messages, and create feeing that might increase purchase probability. The effects of such atmospheres have been demonstrated to influence emotional response and behavioural intentions. It affects attraction. However, research show that people of different gender have different emotion to colours. Men were more tolerant of gray, white or black than woman, and that women reacted to the combination of red and blue more frequently, and got confuse and distracted more than men. This has been understood by designers of print media in presenting advertisement in the pages of the newspaper or magazine. Newspaper and magazine use of colour in advertisement is determined by the nature and frequency of the medium. Newspaper is as abase on daily public on newsprint which has start life duration. While magazine is basically a weekly print medium that is with high quality paper usually glossary to serve the test of the time .newspaper and magazine have deferent ways of colour usage in advertisement presentation.
Advertising is said to be paid, non-personal communication from an identified sponsor using the mass media to persuade or influence and audience. Advertising is used to established a basic awareness of a product or service in them mind of the potential customer and to building up knowledge about it. The primary aim of advertisers is to reach prospective customers and by so doing, influence their attitudes, awareness and buying behavior.
This study is a critical analysis of the impact of advert revenue as the bedrock of mass media especially the print media. The findings show that advertising has not only become an integral part of man’s socio-political and economic life, but has also grown both as a business activity and as a profession. It has become a conscious daily activity and experience which man cannot ignore whether as practitioner, advertisers a consumer.
When newspaper prosper financially, it is because recognize their worth as advertising media. According to Agbanu and Nwamuo (2009) revenue from advertisement represents a growing source of media finances in deferent parts of the world.
Being that the major source of revenue for media houses is advertising presently most newspaper depends on advertisements for their construed meaningful and profitable existence. Newspaper can only flourish when advertisers are using the newspaper in the breation of awareness to their products and service. This result on the impact of advertisement revenue on mass media sustainability shoe vividly that without advertisement patronage, newspaper organization cannot standing. Hence, this findings put advertisement as most important factor to consider when establishing newspaper organization.
From the study the following recommendation are made as follows;
- Newspaper organization should endeavour to consolidate on advertisement revenue to keep the organization afloat. Soliciting for adverts should be done to cover all areas of the economic so as to provide larger market opportunities for the newspaper organization.
- Newspaper organization should maintain high ethical standard in the selection of some advertisement on illicit product such as alcoholic drink, cigarette etc. political advertisement which flourish during election period should handle with sense of media objectivity so as to distinguish it from partisan politics.
- Advertisement should not affect media objectivity in news reporting. This is a concern issue to mass media researchers and scholars, because if media objectivity is defeated, the media will lack credibility and usefulness.
- Newspaper organization should employed experience staff that will drive the generation of advertisement revenue.
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